Bloomberg: Tether Has Full Fiat Reserves For Its Circulating USDT Tokens

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Bloomberg: Tether Has Full Fiat Reserves For Its Circulating USDT Tokens
The latest Bloomberg report puts some light on the long-time mystery of USDT‘s fiat backing. On Tuesday, December 18, the publication reported that Tether has got full fiat reserves backing its circulating USDT tokens. The publication further notes that it has reviewed the ‘bank statements’ of Tether’s Ltd.’s accounts. The report puts the fears and speculation, regarding Tether not having enough fiat reserves, to rest for the moment.
Bloomberg also notes that it has reviewed Tether’s bank account statements for four different months. Every time, Bloomberg found that Tether’s bank reserves were either equal to or more than the circulating USDT supply. Some of the bank statements were even shared with the regulators.
The report notes:
“One statement shows $2.2 billion was in Tether’s account at Puerto Rico’s Noble Bank Ltd. on Jan. 31. That same day, 2.195 billion Tethers existed, according to data compiled by Coinmarketcap.com. The numbers also match up in September and October 2017.”
A Year-Long Tether Mystery
Startup Tether launched its USDT stablecoin pegged to the U.S. Dollar last year. However, the company remains embroiled in a number of controversies surrounding the issuance of USDT tokens and its alleged relationship with crypto exchange Bitfinex. Interestingly, both Tether and Bitfinex share the same executives spiraling down further suspicions.
Allegations suggest that last year Tether issued a higher number of USDT without actually backing them with physical USD. Later the company even sourced these tokens to Bitfinex. Some of the previous reports suggest that Tether’s sourcing of extra USDT tokens led to Bitcoin price manipulation during the December 2017 bull run. Also, the demand for Tether tokens reached its peak at the same time.
Moreover, Bitfinex was the only platform to buy and sell Tether tokens during that time. Citing the bank statements, sources familiar with the matter said that there was a constant money flow between Tether and Bitfinex, during that time.
The suspicion of some foul play gathered steam by the end of 2017 after which U.S. investigative agencies considered stepping into this matter. Earlier this year, the U.S. Commodity Futures Trading Commission issued subpoenas to Bitfinex and Tether. While the investigation still continues, no concrete details have emerged so far.
Along with the CFTC, the U.S. Justice Department is also investigating Tether’s role in last year Bitcoin price manipulation. Stuart Hoegner, the general counsel for Tether and Bitfinex, refused to comment on the cash reserves. However, speaking on the CFTC inquiry, Hoegner wrote:
“As a company that takes its legal and compliance obligations very seriously, we are not in a position to comment on the discussions we have nor to acknowledge the existence of subpoenas or similar legal requests.”
Does This Mean End of All Troubles for Tether?
Well, not really! Although the latest bank statements reveal many details, they still don’t provide a complete accounting of the company’s finances. The Bloomberg report notes:
“To be sure, the bank statements reviewed by Bloomberg don’t show, for example, where the funds originated or where they are now. The statements were provided by someone with access to the company’s records, and a government official confirmed their veracity.”
Moreover, over the last year, Tether moved its deposits frequently across Puerto Rice, Montreal and other places. The report notes that Tether and Bifinex have been constantly losing banking partners over last three years. In 2017, Taiwanese lenders and Wells Fargo & Co. also decided to cut its banking relations with Tether.
Furthermore, Tether failing to have a fair and transparent third-party audit for its accounts still raises several doubts. Earlier this year Tether also dropped its relationship with accounting firm Friedman LLP.
As said above, besides the stockpile issue, Tether’s is also facing other charges of Bitcoin price manipulation. This goes to show that Tether is still not completely cleared of all charges levied upon the company.
However, amidst the recent market crash, Tether has managed to climb up in the top-five spot for sometime this Monday. Currently, Tether is at the number 7 position as per its market cap. Tether lost nearly $700 million of its market cap in the last two months but has managed to hold back off lately.
Bloomberg: Tether Has Full Fiat Reserves For Its Circulating USDT Tokens

Each Day that Bitcoin lives, it’s closer in becoming Digital Gold

Alex Gurevich is a Mathematics Professor who used to be an executive at J.P. Morgan. He strongly believes that Bitcoin (BTC) is slowly becoming Digital Gold with every single day it remains alive. Gurevich believes that the rise and fall of many Altcoins is a completely natural phenomenon. Even more, it’s something expected and Bitcoin outliving them all is proof that time is working for the Digital Currency. Gurevich stated that precious metals have been a means of exchange for centuries. This is thanks to their ability to remain in an uncorrupted form due to not oxidizing easily.
Despite that, Gold is by no means the rarest Precious Metal and certainly not the most common one. He believes that the unique middle ground which Gold held ended up being a huge advantage. Gold throughout the ages was spread widely enough to be used for jewelry and means of exchange, but it was also rare enough so mining could easily disrupt the price. This particular set of circumstances has allowed Gold to outlive and outshine its competitors, gaining worldwide credibility.
Bitcoin is becoming pure Digital Gold
Alex Gurevich strongly believes that Ether is shaping to be the new “Digital Silver”. Bitcoin however, is more than surely on its way to become Digital Gold. If the Math Professor’s predictions are true, Ethereum’s value will be driven by the demand for tech, the value of Bitcoin will be driven entirely by the need for it to function as a store of value.
The professor explained that BTC is the biggest candidate to gain the title because of the advantage of incumbency has favored the currency. The same way gold did to its competitors, Bitcoin is well on the way to outlasting all possible competition.
Many other experts have recognized this. Steve Wozniak, the co-founder of Apple referred to BTC as “the only pure Digital Gold”. He also said:
“Only Bitcoin can be referred to as pure Digital Gold… and I buy into that. All the other digital currencies tend to give up some of the crucial aspects of Bitcoin. For example, total decentralization and no central control. That’s usually the first one they give up to shape their business model.”
Alex Gurevich also told investors worried about the current price that:
“Every single time Bitcoin makes it through a crisis, it gains extra gold credibility. Time only works FOR Bitcoin, not against it.”
Read more:

Mike Novogratz on BTC: “Revolutions don’t happen overnight”
Calgary launches the Calgary Digital Dollar to boost the local Economy
Bitcoin’s True Value: The Price isn’t the most important

The post Each Day that Bitcoin lives, it’s closer in becoming Digital Gold appeared first on CoinStaker | Bitcoin News.

Maltese Blockchain Bank Set to Start Operations by Mid-2019

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Maltese Blockchain Bank Set to Start Operations by Mid-2019
Malta is one of the world’s few nations that are friendly towards digital currency and blockchain technology. However, traditional banking institutions in the country are still refusing to work with crypto companies.
But the situation is about to change. Malta may soon get the first blockchain bank that will serve companies operating in the crypto sphere.
OK Blockchain Capital Limited, an investment arm of OK Group, has invested in Maltese company RnF Finance Limited, which has applied with the Malta Financial Services Authority for license to work as a credit institution.  The bank is set to commence operations in 2019, once its application is approved.
The CEO of RnF, Roderick Psaila, has over 28 years of experience in the banking industry and has already launched a number of banks in Malta in the past 10 years.
“The Bank shall engage into four main business streams: Offer banking services to corporates; Lending; Private Banking and Wealth Management. We are targeting big corporates and private clients and the mentality would be that no industries are vetoed beforehand but each application will be treated on a case by case basis,” Psaila told CCN.
With a new bank, all cryptocurrency-related firms will finally get an opportunity to get credit like any other company. In addition to servicing crypto companies, it will also provide credit for blockchain firms and serve high-net-worth individuals.
Initially, Psaila added, the bank plans to invest mostly into artificial intelligence and blockchain technology. This will allow the institution to attract new customers, while ensuring that a risk-based compliance assessment is implemented.
“We are delighted to partner with Roderick and his team of bankers in this exciting project in Malta, and are excited to be involved in this new banking venture on Blockchain Island,” said Tian Ying, the Founding Partner of OK Blockchain Capital Limited.
Malta is now home to many crypto-related firms, including such major exchanges as OKEx and Binance, which opened offices in Malta earlier this year. Aimed at creating favorable environment for foreign crypto firms, Malta’s Prime Minister Joseph Muscat announced this summer that the parliament will approve three cryptocurrency bills to improve regulatory framework for blockchain companies.
“Malta has been a first mover to comprehensively regulate the blockchain industry, and we are excited to be involved in this new banking venture with RnF Finance Limited,” said Tim Byun, Chief Risk Officer & Head of Government Relations at OK Group. “Malta’s sound regulatory framework and support for new industries will cultivate many more opportunities on Blockchain Island.”
Maltese Blockchain Bank Set to Start Operations by Mid-2019

+$22 Million EO Coin Airdrop: Holders to Receive 44,862,535 EO Coins

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+$22 Million EO Coin Airdrop: Holders to Receive 44,862,535 EO Coins
44,862,535 EO coins are scheduled to be distributed for the airdrop, which equates to more than $22 million! They will be sent from this address: 0x63b2d1244c6232eb3ce82cb21aa6fad9c42d158e. The airdrop is made up of coins that were allocated to the bounty at the outset.
EO.Finance will support the airdrop, and no additional action is required to receive the free coins. All erc20 compatible wallets such as Metamask, MyEtherWallet, MIST, Ethereum Wallet and many others will also be eligible.
Holders can expect to receive on average an additional +8.3% free EO coins, this is as a result of the airdrop amount being distributed equally between holders based upon quantity stored (Those with more stored, will receive more coins). The airdrop will be sent to each address holding EO coin except for 0xf3edbb0c10fca17bb15f3f0b72784477954eff4c which is the address scheduled for burning.
The EO coin burn is scheduled for February, 2019. All 459,617,641 EO coins unsold during the initial sale will be burnt, almost halving the total supply to 540,382,359 EO coins.
You can now buy your EO coins and other cryptos directly from EO.Finance. Meaning you still have time to buy EO coin before the Airdrop. Purchases can be made with your debit or credit card, or just as easily exchange your cryptos to EO. EO.Finance supports the exchange of numerous currencies including; Bitcoin, XRP, Ethereum and Litecoin.
Not only do we have the Airdrop to look forward to, but news of an upcoming launch for the EO.Finance desktop client has been confirmed as well as further details regarding the referral program which will be revealed at a later date.

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+$22 Million EO Coin Airdrop: Holders to Receive 44,862,535 EO Coins

550,000+ Hotels in 210 Countries Can Now be Booked with XRP

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550,000+ Hotels in 210 Countries Can Now be Booked with XRP
When it comes to planning holidays somewhere abroad, most of us turn to such popular services as Booking.com or AirBnB, which allow for booking accomodation of any type, from luxury hotels to separate rooms in rental flats or beds in youth hostels, in any country around the globe. Such services allow for online payments which are well-familiar for the majority of people since bank cards, which allow for instant conversion to any fiat currency available in the world, came into our lives.
But what about those, who tries to keep up with the time and prefer to enjoy their holidays instead of losing significant sums on conversion, while booking accomodation?  Travel website Travala.com, which is commonly reffered to as the AirBnB on the blockchain, is right here to offer such an option.
As it was reported on the Travala.com official web-site on December 14, Ripple’s native XRP has also been successfully added to the platform:
“You can now book 550,000+ hotels in 210 countries using @ripple $XRP. Travel to 82,000+ destinations worldwide.”
This announcement was followed by a similar announcement later the same day when the team at Travala.com mentioned the future intention to include DASH as another cryptocurrency payment method to be implemented into the website, so that to take the total number of crypto-currencies supported by the platform to ten.
The travel website currently accepts Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH), EOS (EOS), Binance Coin (BNB), Stellar Lumens (XLM), True USD (TUSD), XRP (XRP), and its own native coin AVA. Despite the platform’s growing success, the AVA token has been unable to escape the general crypto bloodletting of 2018. It currently trades at $0.13, which is 63% lower in comparison to its initial price of of $0.35 in April this year.
Concerning the recent months, which turned out to be difficult times for most crypto assets, it cannot but be mentioned that Ripple’s XRP was one that managed not only to survive, but also to succeed, establishing new significant partnerships and listings. At the beginning of December, the internet payment system Skrill has announced successful adding of XRP to its platform. And a few days later, it was reported that Omni, a rental service company, began active cooperation with Ripple for utilizing XRP to provide customers with better liquidity.
According to Asheesh Birla, Senior Vice President of Product Management at Ripple, one of the reasons why XRP continues to grow in such difficult times is the Ripple team’s pragmatism that anti-fiat approach does not work right now:
“We decided to work with financial institutions and I think that has paid off, but you also have to think about all the financial requirements and regulations. In 2013 there was that Bitcoin maxim of “we don’t need any of that. We don’t need government or banks or corporations anymore, just Bitcoin.” That approach doesn’t work. Working with financial institutions and regulators is a longer road, but it’s the right one.”
To learn more about XRP coin, Ripple company and their innovative solutions, please check out our awesome guide.
550,000+ Hotels in 210 Countries Can Now be Booked with XRP

Basis Shutting Down Due to Regulatory Pressure

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Basis Shutting Down Due to Regulatory Pressure
Regulation can be a real pain in the neck for financial companies, but it is the one thing protecting customers from fraud and scams. Having a strict regulation could, however, spark some controversy as already existing companies face terrible adversities to overcome the adaptation of their business model to the new laws.
This is the case with Basis, a stable coin crypto network. The company was able to amass more than $130 million from private as well as institutional investors back in April this year and was hoping for an early launch. The investors included big names such as Kevin Warsh from the Federal Reserve and Stan Druckenmiller a hedge fund manager.
Because of the serious restrictions that the new regulatory framework from the SEC has rendered the Basis business model unworkable. Because of this, the company is now forced to return all of the invested funds back to the investors, a fate no company wants to face.
SEC on the Hunt
The fact is that the new regulations are mostly towards Securities and Bonds. This may seem weird as to why would a stable coin have anything in common with these assets? The thing is that the Basis business model was built in a way that their tokens would not be able to avoid being named as securities and share tokens. Because of this, the company would not be able to register them with the SEC, therefore rendering the tokens illegal, and the network completely useless.
Turning into a Habit
This is nothing new from the SEC as it has been quite hostile to the cryptocurrency market in the past when it rejected Bitcoin ETFs despite numerous tries from the brothers Winklevoss. As a matter of fact, the SEC has been the recipient of numerous criticizing quotes from the US community, especially when it accused Elon Musk, the billionaire tech philanthropist of fraud and charged him a fine of $20 million.
Despite the criticism, the SEC continued its strict relationship with cryptocurrencies which is now illustrated in this case of Basis. Quoting a representative from the company it was said that the way the US monetary policy works is that, for every new bond and share token a centralized whitelist is required. Because the Basis network model was completely based on continuously issuing tokens, it would put them in a loop of endless paperwork and whitelist applications, which would have been just unsustainable.
Stablecoins are Indeed Stable
Stablecoins mostly align themselves with a unit of fiat currency. For example, the USDT which is maintained on a 1 USD ration. Basis had a different idea for its stablecoin. Their network would rely on an algorithm in order to adjust the supply of the stable coin to maintain its price on the $1 position.
Despite the primary reason of closing down being unworkable regulations, it’s rumored that the software behind this network was also incompetent. This rumor was born when Al-Naji an executive of Basis struggled to answer the question of when the Basis stable coin would actually go into circulation.
However, there are also numerous theories as to why Basis was stopped in its tracks. Most prominent being the number of stablecoins on the market right now. The popularity of Basis would be under question as people could stray away from it, which would initially make it unmaintainable and outright unprofitable.
Basis Shutting Down Due to Regulatory Pressure

Only 2 out of 25 Top Crypto Exchanges Report Their True Trading Volumes: Report

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Only 2 out of 25 Top Crypto Exchanges Report Their True Trading Volumes: Report
The December Exchange Volumes Report by the Blockchain Transparency Institute (BTI) is out. According to the report, just two of the top 25 cryptocurrency exchanges report accurate trade volume. The two are Binance and Bitfinex. The rest inflate their trade volume figures hence providing inaccurate information. This report confirms the long-term suspicion of wash trading among the exchanges.
The estimates show that this vice features 99% of the volume within 12 of the top 25 crypto pairings reported in the market. BTI points out that:
“Based on this data, over 80% of the CMC top 25 BTC pairs volume is wash traded. These exchanges continue to use these strategies as a business model to steal money from aspiring token projects”
Unlike previous reports, this one explores trading pairs that have suspicions of faked volumes and wash trading. Visible bot usage strategies also exist in some markets as highlighted by the report. OKEx, a leading Chinese exchange, engages in high levels of wash trading activities. Also, Huobi and Bithumb showed unworkable trading volumes.
Research Method
In the December 13 report, BTI supposedly created a new system of combined metrics. The system aimed at offering enhanced transparency for the entire crypto ecosystem. The methodology thrives on compiling data of unique daily visitor counts and order book liquidity. The aggregate information offers an accurate estimate of actual daily volume.
The institute also conducted researches on web traffic data websites. API and mobile app trading data also featured. The research focused on the data that was purportedly collected from exchanges and several mobile web analytics websites.
BTI explained that their research methodology keeps evolving significantly since August 2018. Their team strives relentlessly to offer accurate and transparent exchange ranking, and actual volume assessment tool.
Findings
The research revealed that only Binance and Bitfinex do not engage in wash trading. The misconduct comprises of market manipulation by investors. They create concurrent trades to develop fake and misleading activity in their marketplace. CoinMarketCap ranks Binance as 3rd-largest platform by 24-hour volume. Bitfinex exchange ranks at 21st place.According to volume, BTI’s report ranks Upbit as the third biggest exchange. Bizarrely, CoinMarketCap ranks the same platform as 39th on its trading platforms’ list. The OKex platform was found engaging in wash trading for all its top 30 tokens on offer.
The report reveals that:
 “During this time, we have spent many hours analyzing volume data points, watching order books, and speaking with high-frequency traders, market makers, and trade surveillance consultants. We have collected a massive amount of data and we now feel confident to begin releasing these figures.”
The Strategies Used
BTI alleges that four different bot strategies feature in the inflation of exchange volume numbers. These bots are strategically seta at different trading pairs subject to the time of day. The settings change depending on the prevailing volume trends and the hype around a particular cryptocurrency.
The report concludes by stating that only one of the top 20 exchanges should make it to the top 10 based on the reported volume.
Only 2 out of 25 Top Crypto Exchanges Report Their True Trading Volumes: Report

GSR Capital Hires Overstock’s tZERO to Tokenize $200M Worth of Cobalt Reserves

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GSR Capital Hires Overstock’s tZERO to Tokenize $200M Worth of Cobalt Reserves
The engagement could lead to the tokenization of up to $200 million worth of this rare metal, which is used to make electric vehicle batteries, in 2019 alone, Overstock said Monday.
As part of the term sheet agreement, GSR Capital will purchase up to 3.1 million shares of Overstock’s common stock at a five percent discount to the closing share price on August 1, 2018. GSR Capital will also invest up to $270 million for up to 18% of tZERO’s equity at a valuation of $1.5 billion (post-money).
Additionally, pursuant to a purchase agreement, GSR Capital will purchase from Overstock $30 million in tZERO Security Tokens. These tZERO Security Tokens were purchased by Overstock during the recently-closed tZERO Security Token Offering in a non-cash transaction in which Overstock forgave $30 million in tZERO intra-company debt. GSR’s Security Token purchase agreement replaces the GSR letter of intent previously announced on June 29, 2018.
Already in June this year, tZero announced that it had signed a letter of intent with GSR Capital for a purchase of $160 million in tZero Security Tokens at a price of $10.00 per token, pursuant to the Simple Agreement for Future Equity (SAFE). Beyond the recent $270 million investment for an 18% stake in the tZero platform for trading securities issued on a blockchain, GSR Capital then confirmed it will spend up to $104.55 million for about 3.1 million shares of Overstock.com stock, or about a 10% in the U.S.-based company.
We already wrote of how the ICO of tZero opened in December of last year and raised $100 million in the first day of funding. The maximum amount of tokens is limited to $250 million. On August 6, tZero announced that its Security Token Offering (STO) conducted in the form of ICO was coming to an end, with no further extensions.
The equity transactions are subject to definitive documentation and other customary closing conditions. They also provide GSR Capital with certain rights to allocate a portion of the investments to third-party designees.
tZERO CEO Saum Noursalehi said:
“We are honored to have GSR Capital as a strategic investor. The tokenization of securities has the potential to disrupt global capital markets responsible for moving hundreds of trillions of dollars. Together with our partners, we will globalize our blockchain-based platform, bringing more efficiency, liquidity, and trust to capital markets.”
Patrick M. Byrne, founder and Chairman of tZERO, and founder and CEO of parent company Overstock.com explained that:
“GSR Capital has the prescience to understand the disruptive power of blockchain capital markets. They are aligned with our vision for the future of capital markets built upon the speed, trust, and security of the blockchain. And most importantly, they think big, and want to help us scale this vision globally as quickly as possible.”
GSR Capital’s Chairman and founder, Sonny Wu added that GSR Capital is very excited to partner with tZERO in its effort to expand the global footprint for blockchain-enabled asset trading including stocks, bonds, commodities, etc.
“We have a long-term view on how we want to scale this platform on a global basis,” he said.
Byrne: Blockchain Revolution is Going to Restructure Society
Just for reminder, in November, Patrick Byrne, founder and CEO of Overstock said that he is planning to sell the retail arm of his company to focus on blockchain by early next year.
He then said:
“The blockchain revolution has a greater potential than anything we’ve seen in history. It’s bigger than the Internet revolution, how it’s going to restructure society.”
When asked about the recent cryptocurrency crash, Byrne noted he doesn’t see the point in monitoring daily changes in cryptocurrency’s value. “What coins are doing on any given day is silly,” he answered.
Byrne, known in the blockchain industry for his commitment to the technology, did not disclose the details of the agreement, nor did he name potential buyers; he did, however, say that he expects to have the deal closed by February 2019.
It’s good to remind that cobalt trade has been a controversial subject over the last few years, as while the mineral powers innovative industries like electric car production, more than a half of its world supply comes from the Democratic Republic of Congo, infamous for using child labor in cobalt mines. China has been remarkably active buying cobalt producers and took a lot of blame for funding unsafe ways of production.
GSR Capital Hires Overstock’s tZERO to Tokenize $200M Worth of Cobalt Reserves

Sources of Demand Surrounding Crypto and BTC Will Change Next Year

The crypto market may be down, but that doesn’t mean it’s no longer popular.
According to a new episode of “Fast Money,” the cryptocurrency space is set to undergo several changes in the coming years, particularly when it comes to bitcoin demand. The episode alleges that in the time ahead, teenagers and younger generations will request bitcoin and other crypto assets in place of cash or gift cards when their birthdays or Christmas rolls around.
Crypto Is Replacing Other Desires
In addition, the episode also asserts that central banks and institutions will show a stronger demand for scarce, non-sovereign digital assets, while the opportunities for programmable money will grow heavily.
Cryptocurrency has certainly had an exciting – and shocking – year. Approximately 12 months ago, bitcoin was experiencing an all-time high of roughly $20,000. Months later, coins like Ethereum would join the ranks as powerful crypto contenders, trading at over $1,400 during February 2018, for example. It looked like cryptocurrencies were on top of the world and weren’t about to drop anytime soon.
Unfortunately, this wasn’t quite the case. Many cryptocurrencies, bitcoin included, began to tank at the beginning of the year, and they’ve been unable to stop. Bitcoin has since fallen from nearly $20,000 to just over $3,400 at press time, marking an 82 percent drop in just 11 months, while Ethereum is trading for just over $80. Other currencies, like EOS and Ripple’s XRP, have fallen by more than 90 percent since December 2017.
That’s not to say, however, that things can’t turn around in 2019. In the episode, Spencer Bogart – a partner at Blockchain Capital – alleges that bitcoin will experience a major comeback next year. He admits that his 2018 prediction of bitcoin spiking to $50,000 was incorrect, though he’s certain 2019 has big things in store for the father of crypto.
2019 – The Year of the Crypto Comeback
He mentions:
“At Blockchain Capital, we focus on long-term trends. Could bitcoin still go to $50,000? Absolutely! How long will it take? I’m not sure. Up until recently, bitcoin has been a market predominantly driven by retail players, so in bull markets, we go a little too high and in bear markets, we go a little too low. This has still been a remarkable year for bitcoin. Try to ignore the price. We’ve seen endowments like Yale and MIT enter the space; we’ve seen qualified custodians move into the space, and the level of talent coming in is incredible. Young peoples’ imaginations are completely taken by this technology.”
Will bitcoin show signs of recovery in the coming months? Post your comments below.
Image courtesy of Shuttershock
The post Sources of Demand Surrounding Crypto and BTC Will Change Next Year appeared first on Live Bitcoin News.

Calgary launches the Calgary Digital Dollar to boost local Economic Activity

The idea of City-wide Digital Currencies, native to places has been discussed for quite a while. Although until now, no major progress has been made, the city of Calgary is about to change this. Calgary will become the first Canadian city to launch its very own local Digital Currency. The Calgary Digital Dollar (CDD) will be Calgary’s native Digital Currency and it will be used only in the city of Calgary.
This newly created local Cryptocurrency will operate along with the Federal Fiat Currency, the Canadian Dollar (CAD). Many people are already asking questions about the legal implications of such a financial endeavor. The launch of the Calgary Digital Dollar was officiated by Joe Ceci, the Alberta province Finance Minister. The forebearer of the Calgary Digital Dollar is the Calgary Dollar.
The Calgary Digital Dollar (CDD)
As the name suggests, this is a small initivative from the city council, small businesses, enterprises and nonprofits.The initiative was started back in 1996 and the first Calgary Dollars were used to aid local businesses ensuring that the money spend in the local economy, remained there. Currently operating Businesses in the city will be obliged to accept at least 10% of all payment in Calgary Digital Dollar.
The launch event had Ceci discuss the possibilities of local growth and their implications on the country. Ceci said:
“I actually prefer seeing things happen locally than nationally. I love to see people making money and watch them discuss mutually beneficial forms of barter and exchange. This financial innovation, has the full support of the Alberta government.”
It’s important to know that the Calgary Digital Dollar is not acquired or spend in the same manner as other Cryptocurrencies. The most used way to acquire CDDs is to take surveys and refer new users. Users can also acquire the Canadian Ddigital Dollar by bartering goods and services or trading on the official website or via the app. Users must pay for the service in Canadian dollars.
Afterwards, users are awarded a certain amount of CDDs. Currently the Canadian Digital Dollar can be used to pay for transit tickets, purchase groceries and other services. The idea is to fund the local community projects and accepts donations in Calgary Digital Dollars. License costs can also be paid in Calgary Dollars and soon with CDDs as well.
While these are still new and untested waters, more Local Digital Currencies are bound to show up in the near future. It’s up to governments and administrations to provide suitable conditions for this new form of Finance to prosper and grow.
Read more:

Bitcoin SV quickly cemented its place in top 10
Mike Novogratz on Bitcoin: Revolutions don’t happen overnight
Overstock is investing in developing Blockchain transaction for Grain and Agriculture
Canada isn’t able to provide enough Electricity to all Bitcoin Miners in the country

The post Calgary launches the Calgary Digital Dollar to boost local Economic Activity appeared first on CoinStaker | Bitcoin News.